Chrysler announced on Tuesday it is paying back $7.5 billion in
high-interest bailout loans which it required to stay afloat at
the height of the financial crisis. The payments will
include a $5.8 billion payment to the U.S. government and
another $1.7 billion to Canada. The amount will bring the
U.S. government's stake in the carmaker down to about $2
billion. Chrysler, which is now controlled by Italian
automaker Fiat, took out new loans last week to help it make
the payments, saying that the move will help save the company
about $300 million a year in interest payments.

Chrysler is currently paying between 7 and 14 percent interest
on the U.S. loans, and 20 percent on its loans from
Canada. Earlier this month, Chrysler posted its first
quarterly profit since 2006. With Ford and General Motors
also posting profits for the quarter, it was the first fiscal
period since 2004 that each of Detroit's Big 3 automakers
posted a profit.

Comments

0 Comments

Please login or sign up to post on this network.Click here to sign up now.